Building Futures
West Loop & Fulton Market Hybrid Working

West Loop & Fulton Market Hybrid Working

You know since the pandemic, we hear a lot about Hybrid Working, but I find that a lot of people, and I mean even real estate people here in Chicago aren’t really aware, that this hybrid work model has already been driving huge changes in the office market here for a few years. In the past , when we think of downtown offices it’s always been high rises in the loop, but with hybrid working, people need to be able to come and go easily, to and from work, at any time of day and they don’t want to have to fight their way into the loop. Now Chicago is turning into and important hub for Venture capital startups and tech businesses, but of course just about every business today needs to be a tech business, right? Young people are getting high paying jobs and they want a cool place to live that’s near work, friends and social activities. Most aren’t interested in owning cars and they need to be able to get back and forth easily by walking, bike or Uber. These are the people who are renting all these cool, new construction high rises, that we see going up all around us and these new buildings have great amenities to help make it easy and convenient for residents to work from home. Now of course if you live in a cool new place with all the latest high tech amenities, you’re naturally going to expect your workplace to offer the same. Smart companies know they have to stay out in front of this and position themselves to attract top talent and real estate developers are helping them do that by putting up some really awesome new office projects. So It’s about “Work Near Where you Live!” and the West Loop and Fulton market areas are where you see some great new office developments going up right alongside all the the new residential projects. Take a look at this article from Curbed Chicago. On their map they are showing 58 office and residential developments now under way in the West loop and Fulton Market Districts. Some are still up for approval, but most are already approved and under construction. You can scroll through to read about each of them. First is Focus Development and Shapack Partners 167 N Green. This is a great looking office project that is located right across the street from the Parker which is this residential building that they finished recently. We see quite a bit of this in Fulton market where a developer will put up both office and residential projects adjacent, or near one another. Most of these office projects include a lot of new amenities like sidewalk galleries where pedestrians have a covered walkway, touch-less entry paths, bike rooms on the ground floor, gyms, cafe’s with space to relax and collaborate, meeting rooms and easily accessible outdoor space. They are designed for high connectivity and with high tech ventilation and air filtration systems. Many also have attractive retail / restaurant components on the ground floor or maybe a mezzanine level with outdoor space. If you haven’t been through the West Loop or Fulton Market lately, take a ride one afternoon and check it outl!
Chicago Residential Zoning for Single Family Homes

Chicago Residential Zoning for Single Family Homes

Chicago Residential Zoning

One of the first questions that people often ask me is what can I build on my lot or if they’re looking to purchase a lot, what what type of zoning do I need in order to build what I’d like to build. So, in order to understand this, we have to take a look at the Chicago zoning code

The Zoning code designates R Districts for residential, B districts for business, C districts for Commercial, D districts “downtown” (that allow taller buildings), PMD for planned manufacturing and PD for planned developments where a developer brings a plan in front of the plan commission for approval of a specific plan outside of normal zoning designations.

Each of these R, B, C and D districts are divided into a number of different sub designations, like RM 3, RT 4, B 1-3, B 3-2, etc. and each of these has a different set of allowances (or limitations, depending how you want to look at it).

R districts are divided into: RS for single family,
RT for Single family, Two flats, three flats or small multi family and
RM for bigger multi family
let’s take a quick look at the zoning map;

if I pull up our Chicago zoning map here I’ll just put in an address let’s say 1600 N. Wolcott. This is a busy commercial stretch on North Avenue so you can see mainly B and C zoning in these type of zoning districts don’t allow Residential on the ground floor, so you have to store fronts and businesses.

If we look at the side streets we can see a bunch of different zoning here but mainly we see a lot of RS three and RT for zoning and teaser a couple of residential Carmen Residential districts no. Now looking at all the different types of zoning in this neighborhood it probably seems quite random but keep in mind this is a very old neighborhood which has undergone several changes in demographics over the years. The zoning code has also been changed a number of times over the years.

So what we see now is taking into account what’s already existing and also taking into account the city’s plan for continued development in this area.

So let’s just look at RS 3 zoning as an example. In RS 3 districts the code in effect limits you to single-family homes in effect by designating a minimum lot area per dwelling unit of 2500 ft.². So, on a standard lot which is 25 x 1 25 or 3125SF, you’d only be allowed one dwelling unit.

Probably the most important concept that you need to understand is the idea of floor area ratio or what’s called FAR. This is is an allowance for how much area can be built on the site as a ratio to the land area.

RS 3 designates an FAR of .9 so if you multiply our 3125sf times .9 , we get about 2800sf. This is the floor area you’d be allowed to build on a standard lot in RS 3 zoning. (keep in mind basement space below grade does not count against your FAR). So, another words on that standard lot, you could bill 2800 ft.² above grade plus your basement

Now RS 3 also designates a height  limitation of 30 feet so assuming you have a basement that brings your first floor level up to 5 or 6 feet above grade you’re effectively limited to a two-story house plus basement there’s really no way to get a three-story house in here unless you built three stories on grade, but then each level could be a maximum of 2800÷3 = 930 sf . That’s too small of a footprint, so it wouldn’t make sense for anyone to do that.

So if you divide your 2800 by 2 your max is two floors of 1400 ft.² and you also can have a 1400 square-foot basement so your total square footage can be up to 4200 ft.². Pretty good sized house, right? But it’s only 2 stories.

Now there are also limitations for your setbacks on your side yards and your front and rear yard which can affect the footprint of the property allowed. So it varies by the building type.

RT 4 zoning has a minimum lot area of 1000SF per dwelling unit, so our standard lot can accommodate up to 3 units.
in RT 4 for example, your FAR is 1.2. So a standard lot would allow 3125 x1.2 = 3,750 SF. In 38 ft, you can build 3 floors plus a basement,
so for example, if you just divide that 3750 by 3 floors, you could build 1250SF per floor plus 1250 basement.

You could divide it up different ways, for example you might make the lower floors a bit bigger and the top floor a bit smaller, Maybe doing an owners unit with  roof deck.

RM zoning expands your FAR and you height limit goes up to 45 feet or more which can allow another floor. Minimum lot areas required per unit drop to 700SF or less, but the number of units you can build is practically limited by how many parking spots you can get on the site.

As you get into bigger and bigger projects the considerations with zoning and building codes get more and more complex.

This is but one of the reasons that architects need to be licensed. They are ultimately responsible for interpreting the codes and designing your new building to be in conformance.

Bigger projects, often require an experienced zoning attorney to apply for zoning variances or to apply for zoning changes, neighborhood approvals or apply for a Planned Development, but sometimes we might need a zoning attorney even for a small project.

Tips for Investing In a Multi Family Home Development in Chicago

Tips for Investing In a Multi Family Home Development in Chicago

Team Retro 3

Investing in a multi-family home development in Chicago can help produce more profit or transform the portfolio of single-family homes. Deciding whether the grown liability, responsibility, and capital reserve costs needed to include a multi-family property is a great idea that requires thorough research. This blog gives some tips that you should consider while investing in a multi-family property in Chicago.

How to Invest in a Multi-Family Property in Chicago

Here are some tips that help you learn the ways of investing in a multi-family property in Chicago:

1. Select the Neighborhood Carefully

Location matters when it comes to investing in real estate. Multi-family real estate in Chicago is the same, and you must conduct a study on your options. While deciding where to invest in a Chicago multi-family property, we recommend you hire a local, experienced real estate company.

Your realtor can help you select the options from different parts of the city and provide info on the best investment properties in Chicago. There is a huge difference between spending on a neglected building in a disadvantaged neighborhood and a high-equity three-flat for sale in North Chicago.

2. Ask for Comprehensive Financial Documentation

A property buyer makes provision for multiple residents and will need to gain profits and cost statements for the recent and earlier years. Moreover, you may need to ask for service contracts, present rent rolls, reviews or any current reports from tenants, and service records.

If there is more data to review, you may predict the monthly or annual cash flow and the property’s long-term value.

3. Maintain Sufficient Cash Reserves

You must consider that every building unit may be fully rented. You need to maintain adequate cash for absorbing such empty time. More sudden repairs will happen while investing in a large rental property. Keeping enough cash storage is essential for events like emergency repairs, move-outs, or tenants paying late.

The main rule is to reduce at least 10% from the rental cost to be ready for sudden market deteriorations, repairs, vacancies, or factors.

4. Live in One of the Property Units

You may become eligible for more suitable financing terms if you are investing in a building with two-four units and want to stay inside one of those units. It might add a reduced down payment, helping you save more naturally.

5. Stay Rational

While assessing some apartment buildings, flats, and other multi-family properties in Chicago, you should not be emotional. Although you may start loving a robust 3-flat in a preferred neighborhood, whether you want to occupy a unit or rent all of them, you should remember that you will buy an investment property. Concentrate on the possibilities the property provides and the cash flow opportunities.

Closing Words

Investing in a multi-family home development in Chicago is a rock-solid financial strategy. Neighborhoods of Chicago also provide high-equity properties having higher rental demands. Follow the tips given above and contact LD2 Development to ensure to benefit from a stable multi-family property in Chicago in a solid rental market.

Tips for Investing In a Multi Family Home Development in Chicago

Real Estate Investments in Chicago

Real Estate Investments in Chicago

Chicago houses usually appreciate almost 5% every year, based on the current market, building, region, or neighborhood. While 5% does not appear like a massive return, closer observation shows that real estate investments in Chicago are worthy.

Since your property taxes and mortgage interests are tax-deductible, the government is significantly financing your house purchase. Therefore, your rate of return is higher than every real estate investment you make in Chicago.

4 Primary Benefits of Investing in a Property in Chicago

With its high cost-effectiveness, comparatively large housing inventory levels, and low living costs, Chicago has many renters. Hence, investing in Chicago real estate properties and renting them out is a fantastic option for real estate investors.

Here are some points that explain why it is beneficial in investing in a Chicago property:

1. Individualism and Freedom

Renting a house means you have some limitations on what you will do to enhance your place. Spending thousands of dollars on upgrading a home that you don’t own does not make sense. But, buying your house gives you the freedom to make updates, adjustments, and enhancements according to your need, creating an ambiance you can call home.

2. Income Tax Savings

Another advantage of buying a Chicago house is saving on income taxes. Due to these tax deductions, the government will subsidize your home buy and deduct all of the taxes you pay on the house in a given year from your gross income, thereby lowering your taxable income.

3. More Space

Nowadays, many homebuyers seek to increase their square footage. Luckily, real estate in Chicago provides many options ranging from single-family homes to condo units that offer the same space as a house you can find in the suburban areas. Many provide outdoor space, along with your storage, laundry, and bigger rooms.

4. Forced Savings

Buying a house allows you to make savings in two ways. One is a part of your payment that matches the principal every month. It increases over time. The second is home appreciation. A home appreciates every year, which shows that owning a house is a significant financial investment.

Closing Thoughts

Making real estate investments in Chicago, for most investors, is one of the most crucial decisions they make. Consulting a real estate counselor or professional will be an essential part of the whole process. They have information about vital factors that impact your particular market areas like market forecasts, changes in market states, best places, customer attitudes, interest rates, and timing.

If you want to learn more about investing in real estate properties in Chicago, you can contact LD2 Development, a reliable Chicago home builder. We can help you make successful real estate investments by reducing all risks and increasing the practicality of your investment property in Chicago. You may consult with one of our investment counselors to find the best real estate properties in Chicago and invest in them without any issue. Don’t hesitate to contact us today to schedule a consultation with our experts!

Custom Home Builders in Chicago

Custom Home Builders in Chicago

Custom Home Builders

Choosing efficient custom home builders in Chicago is a tedious job. After all, they are somebody you will work closely with for the next six to twelve months or more. Developing a house is a stressful event. Hence, choosing the right custom home builder is crucial to ensure the process runs seamlessly.

It would help if you considered many things while choosing a home builder in Chicago to help you understand your dream house. Finding the right builder that suits your personality will give you a smooth home development experience. Read on to know our thoughts on qualities you must consider while choosing a custom home builder!

Qualities of Efficient Custom Home Builders

1. Building Process

Creating your dream house must be one of the best things you can do. Ask your builder to share their construction process with you. The process should be simple and clearly understandable.

2. Project Portfolio

Want to judge a Chicago home builder? Then, look at their previous projects. Ensure they have built houses within your selected area, size, and budget before. If you are searching for a home builder in Chicago, make sure they know about Chicago’s building codes and local restrictions.

Also, remember to ask how long they take to finish specific projects. Inspecting the portfolio of a custom home builder will help you get ideas and inspiration also.

3. Client-Friendly Builders That Fits Your Personality

You will start the long-term process of building your dream house. So, you need a client-friendly builder to help you make some personal decisions also. Hence, before choosing a builder, consider the type of personality that fits your working process. Make a wish list and must-have list for your dream home.

Considering these, meet the Chicago builders and share these lists with them. Assess the personality fit when you discuss your project vision. Ask whether you may get their contact numbers to contact them straight if you have any queries.

4. Communication Capacity

Communication is crucial during the building process. Builders should communicate decisions, data, and changes daily. An efficient custom home builder can interact properly with you, other subcontractors, and their team.

5. Strong Client References from Previous Home Buyers

No matter how excellent an interview went with a Chicago builder, looking at their references from past clients can help you get essential info and make an informed decision. A reputed home builder will never hesitate to provide you with their earlier clients’ references.

Closing Words

It would help if you found the right home builder for your dream project. Hiring efficient custom home builders may be a daunting job, but finding them with the proper qualities for you will help you run your home construction project seamlessly. If you are searching for reputed and trustworthy custom home builders in Chicago, contact LD2 Development to discuss working together.

Want to consult with our team and discuss your custom home building ideas? Schedule an appointment today! We look forward to helping you make your custom home building project successful.